If Output Increases by 50% and Is Still Within the Relevant

question 199

Multiple Choice

If output increases by 50% and is still within the relevant range

• A) total fixed costs will increase by 50%.
• B) per-unit fixed cost will remain the same.
• C) total variable costs will increase by 50%.
• D) net income will increase by 50%.

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Definitions:

Profit-Maximizing

The process or strategy of adjusting output to achieve the highest possible profit, taking into account revenue and costs.

Competitive Market

is a market structure characterized by numerous buyers and sellers, free entry and exit, and products that are close substitutes, leading to price competition.

Profit-Maximizing Level

The point at which a company can achieve the highest profit by adjusting production levels, where marginal revenue equals marginal cost.

Total Output

The total quantity of goods or services produced by an economy, firm, or manufacturing process within a specific time period.